Falling oil prices are likely to put pressure on the profitability of the LNG projects in development in northern Australia
Last week companies associated with energy prices took a hammering on the stock market due to a fall in global oil prices. It led to a 2% fall in the ASX200 on Monday that effectively put the stock market back where it was 12 months ago. The falls hit those companies involved in oil and gas projects and brought into sharp relief the challenges for Australia’s LNG industry.
The 2% fall on the stock market was not in itself a major cause for concern, but coming off the back of a 1.5% fall on the previous trading day, it meant 3.5% was wiped off the value of the market in two days – making it the worst two days since September 2011: